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Level 88

Operations Function


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Operations Management
Is the responsibility of managers engaged to produce goods or services. It is concerned with creating, operating and controlling a transformational process that takes inputs from a variety of resources and produces outputs.
Product
Is tangible a physical object that can be handled and stored before they are sold. ie. Bread, clothing.
service
A program that runs in the background to support or serve Windows or an application.
Operations Manager
Part of the senior management team. A large scale organisation will most probably have many managers under the operations manager such as production manager, warehouse manager.
Inputs
Are resources used in the process of production.
Transformation/Process
Is the conversion of inputs into outputs
outputs
During analysis, a list of the results that a system must produce.
Raw Materials
Refers to the materials consumed or converted by the transformation process
Capital Equipment
Refers to the plant, machinery and property necessary to conduct operations
Labour
Refers to the people involved in the operations function.
Efficiency
A measure of how well an organisation uses resources to achieve objectives
Effectiveness
Focuses on doing the things that matter
Operational Competitiveness
Refers to the range over which the organisation intends to compete to sell products to a market. Organisations essentially compete in three ways: Cost, Quality and Speed of Delivery.
Improved communication
Organisations Improve Productivity
Cost - Characteristics
Companies may reduce costs by: Outsourcing, downsizing. Many organisations reducing costs is about working 'smarter' finding new and improved ways to produce products efficiently.
Quality - Characteristics
view as competitive weapon
Flatter management structure
Speed of Delivery - Characteristics
Factors determining Organisational Productivity
Technology Levels - implementation of new technology (robots)
Facilities Design and Layout
Facilities Design and Layout is used by operations managers to optimise operations. Involves planning the layout of workspace to streamline the production process
Fixed Position Layout
Deals with large scale processes such as the construction of bridges, ships, aircraft or buildings.
Fixed Position Layout - Advantages
When product/building is made, no moving is needed.
Fixed Position Layout - Disadvantages
Storage, store safely can be costly
Process Layout
Deals with high varieties of products by grouping activities, equipment and machinery of similar function together.
specialization
Process Layout - Advantages
Process Layout - Disadvantages
Work can become boring for staff, if involved in only one stage of process.
Product Layout
Deals with the manufacturing of goods in mass volume using an assembly line.
time management
Product Layout - Advantages
Product Layout - Disadvantages
costly to set up
Lean Manufacturing
Is manufacturing that aims to eliminate waste at every stage of production.
Materials Management
Involves managing the use, storage and delivery of materials to ensure the right amount of inputs are available when required in the operations system
Technology
Practical application of science to achieve a commercial or industrial
Customer Relationship Management (CRM)
Customer Relationship management refers to the systems that organisations are introducing maintain customer contact. eg. Flybuys
Manufacturing Technology
computer Aided manufacturing (CAM)
CAD
Computer Aided Design - Software generates three dimensional diagrams from a set of given input data.
CAM
Computer Aided Manufacture - is software that designs and controls manufacturing processes.
CIM
Computer Integrated Manufacture - is a method of manufacturing in which the entire production process is controlled by a computer.
Quality Control
a process that ensures that the product meets the customers' needs
Quality Assurance
A proactive approach which aims to build quality into work processes, thereby avoiding errors before they occur. May involve the use of an International Organisation for Standardisation (IOS) certification.
Total Quality Management
Is a management philosophy that promotes continuos improvement in the quality of all the processes, goods and services of an organisation.
Six Sigma
A methodology for continuous BPI on reducing defects in process outputs by using statistical methods
Inventory
Is the goods and materials held as stock by an organisation
Materials Planning
Refers to what the organisation needs to decide on, what goods or services to produce, how to produce it and in what quantity.
Master Production Scheduling (MPS)
Details what is to be produced and when.
Materials Requirements Planning (MRP)
Involves developing an itemised list of all materials involved in production to meet the specified orders.
Inventory Control
Ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required.
Just In Time
An inventory management system that aims to avoid holding any stocks (either as inputs or finished goods); supplies arrive just as needed for production, and finished products are immediately dispatched or sold to customers.
Supply Chain Management
Is the management of the range of suppliers from which the organisation purchases materials and resources.
Quality
Refers to the degree of excellence of goods or services and their fitness for a stated purpose.
Employee Empowerment
Empowerment of employees in decision making encourages everyone to take responsibility for quality, eliminate defects.